Money problems: How to complain about a bank

If your financial institution is refusing to reverse a transaction you did not authorise, or blaming you for the loss of funds, it is important to know how to complain about a bank. Taking the right steps at the right time will give you the best chance of getting your money back.

With financial complaints to the Australian Financial Complaints Authority (AFCA) topping 100,000 for the second year in a row, it is clear many Australians feel that banks are not doing the right thing.

Banks that subscribe to the ePayments Code are compelled to help you recover funds but there are circumstances in which they may deem you liable for unauthorised transactions.

Writing a formal complaint

The first step is to contact the bank’s internal dispute resolution (IDR) service, or complaints department. Their website should outline the IDR process and timeframe for a response.

When you feel hard done by, or are angry, it is easy to get carried away. To make an effective complaint, it is important to take the emotion out of the equation and outline what happened in clear and simple language.

 

 

Include the reference number from your initial contact with the bank for the financial dispute. This is a record of when you noticed the unauthorised transaction or mistaken payment and sought redress. Include dates and a brief description of any other contact you had with the bank, either online, over the phone or at a branch.

If the information you were given over time was conflicting, explain how you believe that has affected your chances of getting the transaction reversed.

Attach any evidence to support your claim, such as screenshots of bank balances at the time of the transaction, or messages you received about the disputed transaction.

Ask them to consider reversing their decision and to provide a resolution as soon as possible.

Responding to your complaint

The Australian Securities and Investments Commission (ASIC), which regulates the financial sector, compels financial institutions to have a dispute resolution system with an IDR that meets ASIC standards and includes membership of AFCA.

Banks and other financial firms have been reporting IDR data to ASIC every six months since January 2024, with more than 4.7 million complaints made to financial firms in the 2023-2024 financial year.

 

 

While response times vary, depending on the claim type, you should expect a response to a standard complaint within 30 days. If the bank needs more time to respond, they should let you know why and when to expect a response.

If you are experiencing financial hardship, let the bank know your situation so they can speed up the process. Read your bank’s IDR and hold them to account if they are not responding within the times outlined.

What happens next?

The bank should assign a customer service officer to investigate and respond to your complaint. They must record the outcome of a financial dispute complaint at the end of the IDR process, showing what you have been offered to resolve the issue. This could be:

• • A service-based remedy, providing you with support or assistance
  • A monetary remedy, including compensation for financial loss
  • A variation in contract or policy
  • An apology or explanation but no remedy
  • A reversal of an earlier decision

 

 

If the bank does not reverse its decision and agree to refund the disputed transaction, you do not have to accept the determination. You can escalate the issue to AFCA, which has the power to make findings and award compensation.

The independent body received 12,505 complaints about unauthorised transactions in the year to June 2024, a figure that has been rising steadily, so you are not alone in taking the next step to complain about your bank.

How do I complain to AFCA?

If you have gone through the IDR process, you should complain to AFCA within two years of receiving the bank’s response. They will investigate and try to resolve the financial dispute complaint as quickly as possible. They can make a finding in your favour and compel the bank to comply with their ruling.

By the time you get to this point, however, chances are you are feeling frustrated and overwhelmed. Handle My Complaint has been helping consumers get better outcomes since 2009. Make a complaint with us and we will handle everything for you. Find out more about how we can help you navigate the financial complaints process with AFCA.